The league advised teams at a memo Thursday afternoon that $180 million isn’t the last 2021 cap figure, only an alteration of the cap”flooring” established past summer in discussions between the NFL and the NFLPA.
The last 2021 cap figure, the memo states,”will soon be put after inspection of their last 2020 earnings figure and other accounting and audit adjustments.” The team year and free service are scheduled to start March 17.
Sources knowledgeable about the discussions told ESPN the last amount is very likely to be between $180 million and $185 million, even although almost certainly about the lower end of this range.
“As you know, 1 facet of these agreements negotiated past summer using the NFLPA to deal with operations throughout the pandemic supplies the 2021 Salary Cap is likely to probably be no less than $175 million,” the memo stated. “Following talks with the marriage that addressed the two real 2020 earnings and projected attendance to the 2021 year, we’ve agreed to boost the minimal Salary Cap for its 2021 League Year to $180 million. We’ll immediately advise all clubs the moment the Salary Cap is put.”
Last summer, while negotiating the conditions where the league would move through the COVID-19 pandemic, the NFL and the NFLPA consented to this initial salary cap flooring of $175 million each group for 2021. This was to protect against earnings losses sending the cap lower.
1 source said Thursday the earnings numbers on the cap is yearly based could have caused a salary cap of approximately $160 million each group, which could have turned into a disastrously large fall in the $198.2 million cap below which groups managed in 2020.
To utilize a rough case: If earnings projections provide a $220 million investment cap in 2022 and a $230 million cap from 2023, the sides may agree to decrease those amounts by $10 million each of the 2 years to compensate with this year $20 million discrepancy.
The last 2021 cap figure may take a while to finalize, since the NFL has been negotiate new contracts with its TV community partners. New TV contracts will clearly impact revenue projections and may cause an expansion of the NFL regular season to 17 matches as early as this season.
But one source close to the discussions said the best-case result of these negotiations still probably would not increase this year’s cap beyond roughly $185 million.
Teams are permitted to roll over cover space from past years, therefore any excess room teams needed beneath 2020’s $198.2 million dollar cap could be implemented to 2021’s limit.
Thirteen teams did not allow fans from the regular season; additional nightclubs restricted audience size to present social distancing in accordance with safety and health regulations in their own state.